NEW YORK — A former New City man once convicted of committing insurance fraud in Rockland County was charged Friday with committing similar crimes in New York City.
Scott Sanders, 40, who owns fleets of commercial vehicles, is alleged to have participated in a nine-year, $10 million scheme designed to obtain significantly lower insurance premiums for his cars, said U.S. Attorney Preet Bharara.
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Sanders, of Saddle River, N.J., is accused of filing fraudulent insurance applications with the New York Automobile Insurance Plan between 2003 and 2012, claiming he was operating and storing his vehicles outside of the city.
Bharara said Sanders’ fleet of cars actually did operate and was housed within the city’s borders during that time and that, by lying about those facts, he was able to obtain substantially lower insurance premiums.
Sanders is also accused of assisting other fleet owners whose vehicles operated in New York City of using the same illegal tactics to obtain lower premiums, Bharara said.
All told, the alleged scheme is believed to have cost several insurance companies more than $10 million.
Both Sanders and his father, Dean Sanders, forfeited more than $1 million in cash, expensive cars and property in Nyack, Manhattan, Florida and upstate New York after being found guilty of racketeering. They also each served jail time.
On Friday, Scott Sanders was indicted in Manhattan federal court, where he was charged with one count of conspiracy to commit wire and mail fraud, five counts of mail fraud and one of aggravated identity theft, Bharara said.
Aggravated identity theft carries a maximum of two years in prison; each of the other charges brought against the 40-year-old carries a maximum of 20 years.
